Britain's international trade department has pledged billions of pounds, including up to £4 billion for South Africa, to help African countries address a chronic infrastructure backlog.
"Africa’s infrastructure challenges not only inhibit its ability to trade with the rest of the world but are also a significant obstacle to intra-African trade, both of which are critical to the continent’s economic growth agenda,” said Emma Wade-Smith, the UK’s trade commissioner for Africa.
"Finance is a critical component of infrastructure development and the combined risk appetite of £21.4bn we have across the region to facilitate projects is a clear sign of the UK’s belief in Africa’s long-term economic growth trajectory."
Wade-Smith said infrastructure projects would have to meet all lending requirements before disbursement of any funding.
The World Bank estimates sub-Saharan Africa alone has an infrastructure backlog of about US$93 billion a year.
Africa is the second-fastest urbanising region in the world behind Asia but still struggles from a chronic lack of basic infrastructure, with an estimated 319 million people across the sub-Saharan region having no access to reliable drinking water, while 620 million have no access to electricity and only 34 percent of the continent’s people have adequate road access.
“There is enormous scope for Africa to boost its exports to the UK and indeed other parts of the world if it can address its infrastructure backlog,” said Wade-Smith.
She said British export credit agency UK Export Finance's risk appetite for Africa had more than doubled in the last few years in line with the continent's improving economic and socio-political fundamentals.
"The continent is becoming increasingly democratic and economically stable, which is heartening as with infrastructure commitments one needs to be in it for the long haul," said Wade-Smith.
